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  • Schedule 23 - special tax table - Joint Petroleum Development Area

    This document is available to download in PDF format (NAT 7288, 94KB).

    Use for payments to workers and service providers in the Joint Petroleum Development Area (JPDA). The JPDA is defined in the Timor Sea Treaty.

    Attention

    For payments made on or after 1 July 2010 to 30 June 2011.

    End of attention
    Attention

    This document is a withholding schedule made by the Commissioner of Taxation in accordance with sections 15-25 and 15-30 of Schedule 1 to the Taxation Administration Act 1953. It applies to withholding payments covered by Subdivision 12-B of Schedule 1.

    End of attention

    Who should use this table?

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Use this table if you make payments to individuals for work or services performed in the JPDA where:

    • the payment is covered by Subdivision 12-B of Schedule 1 to the Taxation Administration Act 1953, and
    • the payee has provided you with a valid Tax file number declaration (NAT 3092).

    Rounding of withholding amounts

    Any withholding amount calculated using this table should be rounded to the nearest dollar. Amounts ending in 50 cents should be rounded upwards.

    How to work out withholding amounts

    If the payee is an Australian resident for tax purposes

    The Australian tax amount to be withheld is the amount:

    less

    • the amount of tax paid or payable to Timor-Leste for services performed in the JPDA (JPDA income) for the relevant period.

    The amount subject to tax in Timor-Leste may include superannuation and other benefits. For example, an Australian resident receives a monthly payment of $10,000 for work in the JPDA and an additional amount of $1,000 is paid into a superannuation fund for the payee. The amounts withheld for Australian tax would be based on $10,000, while the tax paid to Timor-Leste would be based on $11,000.

    Attention

    The rate of tax levied by Timor-Leste is currently 20%. Since 90% of the JPDA income is subject to tax in Timor-Leste, the effective rate is 18% (that is, 90%   20% = 18%).

    End of attention

    If the payee is a Timor-Leste resident for tax purposes

    The Australian tax amount to be withheld from each payment depends on whether the payment is wholly JPDA income or if it also includes other income that is subject to withholding (non-JPDA income).

    • If the payment is JPDA income only, the amount to be withheld from each payment is 2.9% (that is, 10% of the minimum foreign resident tax rate of 29%) of the gross amount of the payment.
    • If the payment includes JPDA and non-JPDA income, the amount to be withheld from each payment is worked out using the following formula:

    Tax at foreign resident tax rates
    total income

    X

    [10% of JDPA income
    + non-JDPA income]

    If the payee is not a resident of either Australia or Timor-Leste

    The Australian tax amount to be withheld from each payment depends on whether the payment is wholly JPDA income or if it also includes other income that is subject to withholding (non-JPDA income).

    • If the payment is JPDA income only, the amount to be withheld from each payment is 10% of the amount which would otherwise be withheld from that payment if the payee was a foreign resident.
    • If the payment includes JPDA and non-JPDA income, the amount to be withheld from each payment is worked out using the following formula:

    Tax at foreign resident tax rates
    total income

    X

    [10% of JDPA income
    + non-JDPA income]

    Examples

    Example 1 - Australian resident

    A payee receives $10,000 for a particular month, including $8,000 of JPDA income. The payee also has $1,000 paid into a superannuation fund of which 80% relates to the period in Timor-Leste. The payee is claiming the tax-free threshold on their Tax file number declaration, has not lodged a Withholding declaration and is not entitled to leave loading.

    The amount to be withheld is $2,986 using the PAYG withholding - Monthly tax table (NAT 1007), effective from 1 July 2008. The tax payable to Timor-Leste is $1,584, that is, 18% of $8,800 (the total entitlement of the payee which includes the JPDA income of $8,000 plus the superannuation payment of $800).

    The amount to be withheld and paid to us is $1,402 ($2,986 - $1,584).

    Example 2 - Timor-Leste resident and payment is all JPDA income

    A payee receives $10,000 for a particular month. The amount to be withheld and paid to us is $290 ($10,000   2.9%).

    Example 3 - Timor-Leste resident and payment is JPDA and non-JPDA income

    A payee receives $10,000 for a particular month, including $8,000 of JPDA income. The amount to be withheld is $3,305, using the foreign resident tax rates included in the PAYG withholding - Monthly tax table (NAT 1007), effective from 1 July 2008. After rounding cents, the amount to be withheld and paid to us is $925 ([$3,305 / $10,000]   [$800 + $2,000]).

    Example 4 - Not a resident of Australia or Timor-Leste and payment is all JPDA income

    A payee receives $10,000 for a particular month. The amount to be withheld is $3,305, using the foreign resident tax rates included in the PAYG withholding - Monthly tax table (NAT 1007), effective from 1 July 2008. After rounding cents, the amount to be withheld and paid to us is $331 ($3,305   10%).

    Example 5 - Not a resident of Australia or Timor-Leste and payment is JPDA and non-JPDA income

    A payee receives $9,000 for a particular month, including $7,500 of JPDA income. The amount to be withheld is $2,905, using the foreign resident tax rates included in the PAYG withholding - Monthly tax table (NAT 1007), effective from 1 July 2008. After rounding cents, the amount to be withheld and paid to us is $726 ([$2,905 / $9,000]   [$750 + $1,500]).

    If you receive payment for working or providing services in the JPDA

    You must lodge an Australian income tax return so your Australian tax can be correctly assessed. Use a copy of the Timor Sea Treaty - Joint Petroleum Development Area instructions (NAT 8277) to help you accurately complete your tax return and calculate your tax credit for amounts paid to Timor-Leste.

    PAYG withholding publications

    All PAYG withholding tax tables and other PAYG publications can be found on our website.

    Copies of weekly and fortnightly tax tables are available from most newsagents. Newsagents also hold copies of the Tax file number declaration (NAT 3092) and the Withholding declaration (NAT 3093).

    Last modified: 10 Jun 2011QC 22999